FT208: “Good liars can make anyone like them while those who don’t lie can’t.” —Old Pithy

Posted by PITHOCRATES - February 7th, 2014

Fundamental Truth

Having Government remake our Health Care System is not the Limited Government of our Founding Fathers

According to a Gallup poll approximately 38% of people identify themselves as conservative while only 23% identify themselves as liberal (see Liberal Self-Identification Edges Up to New High in 2013 by Jeffrey M. Jones posted 1/10/2014 on Gallup).  With most of the rest (34%) identifying themselves as moderate.  Or, in other words, 77% of the people do NOT identify themselves as liberal.  That’s over three-quarters of the population.  Which means if you were in a group of four people only one of the four would be a liberal.

And yet we have Obamacare.  Thanks to the Affordable Care Act passed on partisan lines when the Democrats controlled both chambers of Congress.  The most liberal change to our health care system (the government will charge people a fine/tax if they don’t buy health insurance).  The only time in history that government has forced people to buy something against their will.  Without having any kind of say in the matter.  Like we do with car insurance.  If you don’t want to buy car insurance all you have to do is NOT drive a car.  But with Obamacare there is no choice.  Everyone has to buy health insurance.  Period.

Having government remake our health care system is not the limited government of our Founding Fathers.  It is actually more in keeping with a royal decree issued by the king the Founding Fathers fought for their independence from.  Ye shall do this.  For the ruler has spoken.  And ye shall pay more taxes to fund this huge growth of government.  Another thing not in keeping with our Founding Fathers.  Higher taxes.  So how have we come to this when 77% of the people don’t want any of this?  Because liberals are some of the best liars in the world.  That’s how.

Discounted Reimbursements are causing Doctors and Hospitals to leave the Obamacare Network

To make Obamacare work they needed to get people to pay more for their health insurance.  So they could raise a lot of money to subsidize health insurance for those who could not afford to buy it.  Which they couldn’t do if people kept the policies they liked and wanted to keep.  Especially those lower-cost ones.  So they made the policies people liked and wanted to keep noncompliant with the Affordable Care Act.  Forcing their insurers to cancel them.  And forcing people to buy more costly policies.  This providing the subsidy money Obamacare needed.

So this was the plan.  To cause mass cancellations.  And then force those people with cancelled policies to buy more expensive policies.  But this was only part of the formula.  To keep more of those higher insurance premiums they also raised deductibles.  So not only did people pay more for their health insurance policies.  Those policies paid for less.  Forcing people to spend a lot more out-of-pocket before their insurance kicked in.

We have huge budget deficits.  And growing national debt.  A big part of that debt is from Medicare and Medicaid (and Social Security).  Getting people to pay for other people’s health insurance won’t cut these costs.  But there is something that will, though.  The same thing the government is doing with Medicare.  Pay doctors and hospitals less.  By discounting their reimbursements.  It worked pretty well with Medicare.  So they were sure it would work well with Obamacare.  Of course, health care providers overcharged private insurers to recoup what the government didn’t pay.  So this will no longer be an option under Obamacare.  Which has caused a lot of doctors and hospitals to already leave the Obamacare network.

People would rather hear a Pleasant Lie than an Unpleasant Truth

There was a lot if opposition to the Affordable Care Act.  For the people did not want national health care.  And they felt that was where Obamacare would lead to.  So President Obama told people in person.  And looked into the camera.  Making a promise to the American people.  “If you like your health care plan you can keep your health care plan.  If you like your doctor you can keep your doctor.  If you like your hospital you can keep your hospital.  Period.  No one was going to take these away from you.  All we’re going to do is give you better health insurance while saving the average family $2,500 on their annual insurance premium.”  None of which was true.

Of course, had the president told the truth he would only have confirmed everyone’s fears.  Which is why he lied.  A lie so big PolitiFact named it the Lie of the Year.  And he told the lie so easily.  He was so reassuring that the people believed him.  In fact, they wanted to believe him.  For they liked this president.  And they trusted him.  Despite his economic policies having failed to produce a strong economic recovery.  For even when polls showed the people thought his policies were taking the country in the wrong direction the people still liked him.  Because he tried.  Always saying things the people wanted to hear.  A lot of feel-good things.  Affordable health care for everyone.  Leveling the playing field.  Making the rich pay their fair share.  Free birth control.  Not enforcing federal drug laws in Colorado and Washington.  With talk like that no wonder the people liked him.  And why it was so easy for him to lie to the people.  As they were willing to believe just about anything he said.

President Obama is everything our parents aren’t.  Who tell us what we need to do.  What we should do.  And what we shouldn’t do.  Regular killjoys.  Unlike the president.  And the Democrats.  Who don’t mind people having a little fun in their lives.  Unlike the Republicans.  Who are as bad as our parents.  Always telling us things we don’t want to hear.  Like truths.  Facts.  And how things are.  Reality.  While the president and the Democrats tell us how things could be.  How life can be more fun and more carefree their way.  Whereas life requires a lot of hard work and sacrifice the Republicans’ way.  Because reality can suck.  Which is why some people use intoxicants to escape it.  Or vote Democrat.  Willing to accept on faith their fictional
alternative to escape reality.  For it turns out people would rather hear a pleasant lie than an unpleasant truth.  And people will like you if you tell them pleasant lies.  While they won’t like you very much if you tell them unpleasant truths.  Which is why good liars can make anyone like them while those who don’t lie can’t.  This is why people didn’t like Mitt Romney.  He told the truth.  And why people liked President Obama.  Because he told them what they wanted to hear.  Such as things like the Lie of the Year.

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Wind Power cannot work in the Free Market without Massive State Subsidies

Posted by PITHOCRATES - December 9th, 2012

Week in Review

A typical size of a wind turbine is around 3 megawatts.  Whereas a typical steam turbine (the kind spun by a coal-fired power plant) can be as big as 500 megawatts.  So you would need about 167 wind turbines to produce the output of one steam turbine.  But even then they won’t produce the same amount of useable power.  Because the wind doesn’t blow all of the time.  Making wind power a very expensive, intermittent power.  So expensive that no free market solution exists.  Which is why the government heavily subsidizes wind power (see 7 Myths About the Wind Production Tax Credit by David Kreutzer, Ph.D., posted 12/4/2012 on The Foundry).

The wind production tax credit (PTC) has created an industry that produces overpriced, intermittent power, and it will continue to produce overpriced, intermittent power so as long as there is a PTC to pay for it…

… if wind were already cheaper, then it could compete right now. If it is on the verge, then wind-power producers could enter into long-term contracts (which they already do) that would allow them to recoup their investments in the near future when wind will supposedly be so cheap. Neither case argues for subsidies…

The legislation in force has been very clear ever since it was written: Wind turbines put in place by December 31, 2012, qualify for 10 years of production tax credits. Windmills placed in service this year will continue to receive credits—which are worth 40 percent or more of the wholesale value of electricity—for every kilowatt-hour generated until 2022…

Subsidies may well provide jobs and income for those receiving the subsidies, but, as the Spanish experience illustrates, whatever job-creating mechanism the subsidies put in play is offset by running this same mechanism in reverse elsewhere: Financing the subsidies requires taxing other parts of the economy.

A 40 percent or more subsidy?  Anyone that needs a 40% subsidy to stay in business shouldn’t be in business.  That’s a lot of money pulled out of the private sector to produce substandard electric power.  If we went with reliable electric power from coal-fired power plants we wouldn’t need to pull a 40% subsidy from the private sector.  And the power would be first-rate.  Whether the wind blows or not.  Which is why coal-fired power plants work in a free market economy.  And wind power does not.

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Automakers can’t sell All-Electric Cars and Hybrids because Car Buyers don’t Want Them

Posted by PITHOCRATES - September 30th, 2012

Week in Review

The American car buyer has looked at all-electric and hybrid cars.  And after about two years of looking at them they are telling us what they think about them.  They don’t like them.  They don’t want to buy them.  And the automakers are starting to get the message (see Buyers, automakers raise doubts about electric cars by Chris Woodyard posted 9/28/2012 on USA Today).

Having largely exhausted a pool of electric-car devotees as buyers, automakers are facing headwinds in trying to make plug-in cars a mass-market product.

Nissan joined General Motors last week in offering deeper lease discounts on its premier electric car. The latest deal on the all-electric Leaf brings the lease payment closer to the level of a comparable non-electric car, not counting the gas savings, an analysis for USA TODAY by Edmunds.com finds…

Yet, some automakers are stepping back when it comes to battery-only electrics:

Toyota, for instance, announced this week that it will bring as few as 100 of its electric version of the Scion iQ to the U.S., not the thousands expected earlier. Toyota Vice Chairman Takeshi Uchiyamada warned that current all-electric cars just don’t meet the range requirements of most drivers.

The electric car is perfect for someone who doesn’t drive anywhere.  Where the range of the all-electric car isn’t an issue.  If you have a short commute to work or all your needs are satisfied within a 10 minute drive from your house than the all-electric car is for you.  Well, that.  Or walking.  But if you have a 30 minute drive home from work in a winter blizzard you’re going to want a gasoline engine under the hood.  To keep you warm.  To keep your windows defrosted and ice free.  To keep your headlights shining bright.  And best of all, to get you home so you don’t have to walk home through that blizzard.

EV start-ups aren’t having any easier time. Tesla warned in a filing this week that production of its new $57,000-and-up all-electric Model S sedan has fallen far behind schedule.

The higher price also has put off buyers, and the non-partisan Congressional Budget Office recently issued a report concluding that the government’s up-to-$7,500 tax subsidy for buying an electric car will cost taxpayers $7.5 billion over seven years but does not make up for the extra cost of the cars. It found that electric cars average $16,000 to $19,000 more than a comparable gas-engine or hybrid vehicles.

But cheap leases, along with the savings on fuel costs, have closed that gap some, at least for the Volt and Leaf.

GM has sold 13,497 Volts in the first eight months of this year, according to Autodata, more than three times as many as in the same period last year. The total has been helped by the fact that on the $39,995 Volt, Chevy is offering a $299 monthly lease after a $1,529 down payment.

The Edmunds.com analysis finds that before adding in fuel savings, this amounts to 34 cents a mile for the life of the lease, compared with 22 cents a mile for a comparable, non-electric Chevrolet Cruze, which has a sticker price of less than half a Volt’s.

This is the big problem with all-electric and hybrid cars.  They cost too much.  And people only buy them because the government slaps fat subsidies of taxpayer money on them.  Or by the sales of gasoline-powered cars.  For when they sell a car below cost they have to recover that cost elsewhere.  And the only place they can is in the price of the cars people want and are buying.  Those cars with a gasoline engine under the hood.

So if you want one of these electric cars you have to make big sacrifices in your life.  From not driving anyplace more than a 10 minute trip from your home.  To not buying other things because you’re paying so much more for a car than you have to.

It is clear that the all-electric and hybrid cars are just not viable business models now.  That could change.  But for now any more taxpayer money invested in electric and hybrid cars is money wasted.  Because car buyers simply don’t want to buy them.  Now all we need is for our government to learn what our automakers have learned.

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